Vineland UEZ Loans

The Urban Enterprise Zone or UEZ Loan Program is available to businesses that currently exist and new businesses which are moving into the designated UEZ areas of the City of Vineland. The objective of the Loan Program, administered by the Cumberland Empowerment Zone Corporation, is to provide favorable financial incentives which, when coupled with private financing, will stimulate business expansion in the UEZ.

To qualify for a Vineland UEZ Loan, an applicant must be certified by the State of New Jersey as a UEZ business. To be certified, a project under consideration must be located within the geographic limits of the City of Vineland’s UEZ.

Use of Funds: Funds may be used for the acquisition of land and buildings, new construction and site improvements, renovations, acquisition of machinery and equipment, and working capital. Working capital may be used for inventory financing, receivable financing, training and marketing financing.

Loan Amounts: Loan amounts may be up to 40% of the total project costs within target markets with a maximum loan amount of $125,000. The percent of CEZC funding is determined by the ability to utilize other public/private funding sources and the project’s gap in financing. In addition to projects costs and funding sources, loan amounts are also based on the number of jobs created and the impact the project has on the community.

Borrower’s Equity: Loan applicants are required to provide at least a 10% equity contribution to the project.

Rates and Terms: Interest rates and terms are based on the structure of the financing and the community benefit. The interest rate is fixed and is set by the CEZC Board of Directors. The term is a five-year balloon with amortizations up to 25 years subject to the useful life of the asset, or fully amortized loans up to a maximum of 15 years.

The approval and disbursement of UEZ loan funds is contingent upon the Borrower remaining a UEZ certified business while meeting and maintaining all outstanding tax obligations to the State of New Jersey. Furthermore, existing borrowers must remain a UEZ certified business to continue their UEZ loan. Failure to comply with this mandate may result in default and repayment of the outstanding loan balance.